- While ST Engineering has a strong execution track record, the slowdown in its order book growth, slower-than-expected turnaround in the urban solutions & SATCOM business and strong year-to-date price performance of the counter nudge us to downgrade ST Engineering to HOLD.
Mixed Operating Trend
- - Read this at SGinvestors.io -
- Order book saw a marginal dip, partly due to forex.
Defense steady; Aerospace & USS decelerating
- - Read this at SGinvestors.io -
- Commercial Aerospace (CA) business saw 3Q24 revenue of S$1.054b, -2% q-o-q, +7% y-o-y. 9M24 revenue for the segment was up 16% y-o-y to S$3.285b. Engine MRO saw strong growth. PTF was affected by feed stock challenges but partially mitigated by airframe MRO.
- Urban Solution & SATCOM (USS) business saw 3Q revenue of S$455m, -7% q-o-q, -5% y-o-y. 9M24 segment revenue was flat at S$1.373b. Higher revenue from Urban Solutions (includes TransCore) was offset by lower revenue from SATCOM.
- Overall, Defense & Public Security (DPS) business is holding the group. Commercial Aerospace (CA) business is seeing change in business mix due to supply chain issues. Urban Solution & SATCOM (USS) business is taking longer to turn around.
Order book flatlines
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybank.com/ 2024-11-19
Previous report by Maybank:
2024-08-15 ST Engineering - Good Execution.
Price targets by 2 other brokers at ST Engineering Target Prices.
Listing of research reports at ST Engineering Analyst Reports.
Relevant links:
ST Engineering Share Price History,
ST Engineering Announcements,
ST Engineering Dividends & Corporate Actions,
ST Engineering News Articles
